• Sep 11, 2010
2011 Volvo S60 - Click above for high-res image gallery

Volvo received a €200 million loan from the European Investment Bank in March of this year, and sought another €300 million to cement its finances as it navigated the process of being sold by Ford. The rest of the funds were put on hold as Ford concluded the deal with China's Geely, but now that the sale is complete Volvo is ready to take delivery of the additional sum.

Geely-owned Volvo has revised its product timeline compared to when when it first applied for EIB assistance, however. As a result, it now seeks €600 million. At the moment, the process is on hold while Geely discusses loan guarantees with the Swedish government, but perhaps that extra dosh – assuming it's approved – will help pay for Volvo's 7 Series and S-Class competitor.


[Source: Reuters]


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  • 32 Comments
      linuxaddict7
      • 4 Years Ago
      While GM can ask for loan from German Govt, why cant China from Sweden Govt. Not saying the Swedes are going hand out the check, but there is nothing wrong in asking as long as Geeley keeps base in Swede.
      • 4 Years Ago
      Hope this won't be a strip and flip operation.
      • 4 Years Ago


      China is holding $2.5 TRILLION in foreign reserves

      http://en.wikipedia.org/wiki/List_of_countries_by_foreign_exchange_reserves

      Geely needs to ask the Chinese government for the loan, not the Europeans and not the US.
        • 4 Years Ago
        Therefore, you are telling us a company that operates in Sweden and provides Swedish citizen jobs should ask another country for aid?
      • 4 Years Ago
      I don't get it China is destroying the export market for every producer of low and medium priced items and now they want European countries to loan them money so they can produce even better cars to export ( you can bet that they will transfer all of this technology to Chinese made cars). China requires all foreign car builders to have a Chinese partner or they are not allowed to be in China but now they also want funds to produce cars outside of China! I hope Europeans and American enjoy having a much lower standard of living very soon because we are providing China and their companies the tools to do it to us.
        • 4 Years Ago
        You do realize that the largest car market in the entire world...is China right? Mostly they care about battling for market share in their own home market because that's where the money is. VW and Audi sell more cars in China than everywhere else combined, lol.
        • 4 Years Ago
        levine96629

        I guess levine96629 must not have a clue what goes on in CHINA! Where do you think all of these companies are getting the funds to start-up all of the companies and then go international with them? China is unlike any country in the world they have so many people that they have been making the lives of their people miserable and if you have a first born girl many either give them up or do much worse things to them. The real workers work very long days for very little income and if you are not in a major city you live just as your family did a hundred years ago! China is polluting their water, air and in the past couple of years put cheap fillers in milk and toothpaste that made them POISON and some of these items were exported. I hope that you do not allow your children to play with crayons from China because most contain lead and other poisons!!! China is not a free country but is still a Communistic governments that has time after time exploited their people to create growth and jobs.

        China is a county that puts their people in prisons for speaking their minds or you disappear without ever being seen again or maybe a tank can run you over during a protest..... If you don't think that China can erode or economy by having workers that get paid two dollars per day then you need to take a class on economics. The average new car in China is bought by a whole family. When you have two billion people buying two million cars it is a very small number of people that have successful lives in China.

        levine96629 next time you accuse someone of bashing the lovely Communistic Chinese see who is supporting North Korea and is selling long rang missiles / and equipment to make nuclear material to IRAN and the rest of the middle east.
        • 4 Years Ago
        Steve, you are a piece of art. Without ever setting your foot in China, you knows all about China social and economic issues. You accuse China of supporting neighbor country North Korea but doesn't acknowledges the facts about US supporting worldwide dictatorships with similar backgrounds. Remember Pinocet, the Shad, or how about the Middle East nations such as Saudi Arabia and Kuwait. You call attention to China's pollution but fails to mention Love Canal, Lake Erie, Superfund sites such as strip mining sites in the East and Midwest, nuke facilities in Oregon's Hanover, TVA, Fermi reactor of Detroit, Three Mile Island, and etc. In addition, other chemical environmental disaster such as pools of DDT near Palos Verde, former GM production facilities in Michigan, polluted ground water sites from gasoline additives MTB and industrial solvents, lead from burning tens of million of gallons of tetraethylead additives for the past 70 years, PCB from millions of leaking and discarded transformer, etc. As the most industrialized nation in the world, America has more superfund sites than any nation. Next, you try to demonize China by referring to its one child family planning policy. You conveniently leaves out the fact that among industrialized nations, America has one of the highest abortion rates, especially unwanted teenage pregnancy. As for exporting weapons to the world, America is one of the world largest merchant of death. American F-15, F-16, F-5, C-130, A-18, helicopter gunships, AAM, SAM, smart bombs, dumb bombs, etc are marketed and sold worldwide. While you may feel America deserves to stand on high moral ground, the facts show otherwise.
        While China is run by the communist party, the Chinese people enjoys more economic freedom than Americans because China do not have the kind of anti-business regulatory bureaucrats so popular in America's Big Government. That is one of the reason why China continues to grow and prosper while America is insolvent.
        As for China putting its dissent in prison or in harms way, American history is equally appalling. Martin Luther King, Caesar Chavez, Margaret Sander, Susan B Anthony, Malcom X, are just some of the most notable victims. In Kent State University, Ohio national guards shot, wounded and kill students who demonstrated against the Vietnam war. And of course, let's not talk about the African American civil right marches or the native American death marches of the 1800s.
        For the record, Iran's nuclear facility is a Russian design and fueled by Russian uranium, not from China.
        Steve, you need to do more travelling. To Europe, Russia, China, to anywhere as your limited view of the world has expressed itself in arrogance and a perverted one-dimensional world.
        • 4 Years Ago
        Steve is just another China basher among many who are brainwashed by anti-Chinese propaganda.

        It is illuminating there is no hysteria over other foreign buyers of previous American owned auto brands. Tata, the India auto maker, bought Jaguar from Ford while another bought Landrover. A Middle East investment firm bought Aston Martin from Ford. Fiat bought the entire Chrysler Corporation. No body bought Hummer, and as a result GM wasted valuable resources.

        Clouded by his perverted bias as well as his ignorance of the auto business, Steve resorts to stereotype about the Chinese copying Western technology as if China is incapabable of developing auto technology. His opinion is reminiscient of American contempt of anything made in Japan during the post WWII era.

        Even as both GM and Chrysler were bankrupt in 2009 while Ford is barely surviving today, it is ironic that Steve speaks so arrogantly about the domestic brands but contemptuously about a Chinese brand that has yet to appear in US market.

        Just as no one can force Americans to buy things they don't want, no one can force American middlemen to import goods into US from China. Americans buy goods Made in China because they want to improve their standard of living. For the same reason Americans buy Japanese cars made in Rust Belt or BMW/Mercedes built in Germany, the Chinese buy Buicks made in China and 747 made in Seattle.

        China does not have the power to establish a standard of living for America. And certainly neither does Geely nor the entire Chinese auto industry. That power belongs to the American people and government. Any decline in American's standard of living is entirely the fault of the American people or their government.



        • 4 Years Ago
        Steve,
        As you have admitted as much, you make your living in import business with China, the very China you so critically condemn, at least on paper. Apparently, your pursuit of profit is more important than the evils that you identified in China's social, economic, political, and environmental policy. Perhaps you are exposing more halo than you intended.

        Today, stationary-armchair expert of China are a dime per dozen. Self-appointed and annointed ones are even more discounted.

        As for copy-right laws and laws in general, every sovereign nation has the authority and power to legislate whatever laws it deem proper for its society. Just as Europeans may find some US law draconian and Americans may find some Chinese law offensive, the Chinese may find both of theirs absurd. However, there is always the self-righteous who claims his laws is the absolute best.

        I hope you take some time off from your work and do some traveling to Europe, Russia, Africa, etc and especially China, the nation with which you do much import business. Try to be an inquisitive Alex Tocqueville and seek understanding instead of judgmental or succumb to your years of propaganda. Take care.
        • 4 Years Ago
        levine96629

        Now you are really off base! I make my living in the import business and have to deal with China all the time. China not only fails to follow most international intellectual laws they continue to use child labor in most of their dangerous. China also will use dangerous components to keep the price down and will poison its own people in the process. It is also funny how you ignored the fact that they copied complete cars and were barred from exporting them to Europe they also were caught making fake collector cars and the government still allows this to go on without prosecuting the business owners. I bet if they were coping your golf clubs and selling them are the real thing you would be upset also! If you are comparing the USA's human rights policies to China then you are lost in a fog! China would put you in jail if you were to bash them the way that you are the USA (If you are from the USA or you might be from China, who knows?) America is in a new chapter because in the past we were an exporter and not am importer, but make no mistake we still are the largest exporter in the world and we have the largest economy by a long shot with many fewer people! China has done an incredible job the past twenty years but their human right policies are criminal. You also compare our abortion rates to theirs but you failed to mention that they use abortion as a form of birth control and will kill first born children that are female or send them into slave/prostitution when they are older because they need the money.

        China can export due to their very low wages, failure to follow intellectual rights, poor pollution control (yes in the past we have had bad pollution control but we have greatly improved) a population that needs jobs of any kind. Their government has also tied their money to ours so they are not ever over priced like the Euro or other governments money. The Chinese government has gone public with plans to buy depressed companies to continue to grow where do you think that these funds come from?

        I have no problem with the Chinese or any other fair government (I do have a problem with the middle east and their use of children as bombs) but until the Chinese are not a communistic country with unfair policies I will not support outside monetary investments of any kind.
      • 4 Years Ago
      Does any company from China really need foreign government loans? This is like Oprah needing food handouts.



        • 4 Years Ago
        @daftguy
        That's not actually true...about half of all income in China is "secretly" saved away by the government to help pay for everyone's living expenses. Most people in China live in fairly good subsidized housing and there's definitely a lot of stuff that makes sure that people have jobs. That's why the locals can afford to have apartments and food even though a foreigner going there would spend more money than the locals make in a month-the government is heavily subsidizing the basics so people can live. Apartments in Shanghai are like $900 a month for foreigners at market pricing but plenty of Chinese people live there and they definitely don't pay $900 a month. It's kinda like rent control in New York City, if you decide to up and move to NYC now you have to pay like $3000 to live in Manhattan but there's people who've been living there forever who pay like $800 a month for the same apartment.
        If there were really a billion people starving and hopeless no government could stop them from revolting. One of the reasons why the Chinese government is so paranoid and sometimes overly heavy handed is that there's so many people-so riots would get really ugly really fast. They're actually pretty good about keeping everyone happy the best they can or they'd have been tossed out of power a long time ago. The Chinese believe in the mandate of heaven so anybody in power has to keep the people pretty damned happy.
        • 4 Years Ago
        @thedude
        That would be true if China actually took care of the entire 1.3billion pop. Problem is that they don't and they only run a communist system in name. Going to school and seeing the doctor only happens when you have money in China. You don't think the most expensive Olympic games ever could have happened in a poor, 1.3billion population saddled country, do you?
        • 4 Years Ago
        Why is it that so many people are completely ignorant to the fact that despite the economic growth numbers, China is still far from wealthy. They have a 1.3 billion population, that's about 4-5 times as many people America has, with a GDP still far behind that of America's.

        For those of you that have difficulty understanding, here is an example:

        It's like thinking your neighbor with 20 kids is rich because he makes 100k a year.
        • 4 Years Ago
        You sir, have my vote for best comment of the day!
        :-)
        • 4 Years Ago
        @daftguy

        I don't disagree with you at all, but you seem to believe that China is the only country that does those kinds of things. We spend and send millions of dollars all around the world supposedly in the name of aid when there are millions of people right here that could use it, just look at New Orleans. What's up with that?

        And while the Olympic games were very costly, you seem to completely ignore the many benefits it brought to China, like increased tourism for years to come and a much needed morale boost for the entire country, to name a few.
        • 4 Years Ago
        Absolutely. China is sitting on at least two trillion in cash as well as several trillion in US debt.

        EIB should finance their own problems, not China's.
      • 4 Years Ago



      The Chinese government has nothing to do with Geely ?

      Please don't be naive.

      Geely, the "privately owned" company needed approval from the Chinese government to purchase Volvo.


      ---------------------------


      China govt approves Geely acquisition of Volvo

      July 29, 2010

      BEIJING—Geely Holding Group has received final Chinese government approval to acquire Volvo Cars from Ford Motor Co., the Commerce Ministry said Thursday.

      Commerce officials approved the $1.8 billion deal Monday, said a ministry spokesman contacted by phone who refused to give his name. He said other agencies already have signed off on it.

      "This was the final stage of the government approval," he said. "There are no conditions attached."

      A Geely spokesman, Ning Shuyong, said the government approval paves the way for the company to complete the acquisition. Geely and Ford have said they planned to complete the deal in the third quarter......................

      ....................Beijing has been encouraging Chinese companies to expand abroad, taking advantage of the global financial crisis to acquire assets at lower prices................

      http://www.boston.com/business/articles/2010/07/29/china_govt_approves_geely_acquisition_of_volvo/



        • 4 Years Ago
        Large multinational transactions almost always need approval. Volvo and Ford needed approval from the Swedish government to sell it and the same thing applies to pretty much every single multi-national transaction ever. Even transactions in the same country need approval-when you want to do a merger in the U.S. you have to get approval because they don't want you forming some huge monopoly.
        Basically your criticism is ridiculous-there's no multibillion dollar international transaction that's ever not needed approval lol.
        • 4 Years Ago
        second best comment of the day for hitting the trade ignorance jackpot.
        • 4 Years Ago
        In the past decade when several Chinese investment companies wanted to buy Uncal, 3Com, or another telecom in the USA, the US government did not approve the sale even before the start of any serious sale negotiation. Does that mean these US companies are government owned?
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